The best retirement income plan is one where meticulous detailing is prevalent right down to the yearly income timelines. Financial experts all around the world use tools like graphical representation and excel documents to plan for a retirement plan the right way. The following post will allow you to gain vital insights into the best-laid strategies for post-retirement income. Check with Arlington Capital Management for ideas.
Start with a template
The design of the template should allow for individual rows for every calendar year. The age should be listed for the individual as well as the wife alongside the calendar years. The projection is usually extended till an approximate life expectancy. Here are the finer aspects of the template design when it comes to retirement planning.
Listing the sources of income
Mark the year for the start of the benefit and continue till the life expectancy. Keep in mind that you need to make a detailed note of the starting year for the drawing of benefits. Depending on the timing of the retirement the benefit can start from the middle of the year. Also, do the same for your spouse’s social security.
About the pension
This will include the age and the amount you start drawing your pension or plan for it. Log in the pension sources separately for each year for both yourself and your spouse. Also, make sure to keep your options open with the pension survivor account in case of death.
For annuity incomes
You will need to input this if you have an annuity that will pay you at a certain point in your life. Various payment modes include life, joint life or fixed time.
Many individuals go for part-time work after retirement, and this is usually listed under the income from other sources column. Keep in mind that if you plan to work, you need to adjust your social security column. Other sources of income also include rental earnings and alimony, if any. You can also add life insurance proceeds, inheritance and other one-time payments under this category.
Next is the vital step in calculating the annual expenses. This will include the mortgages and loans that need paying off. Keep in mind that you need to input the year as accurately as possible for the paying off of the debt. Also, you need to calculate your taxes with the help of a tax planner to get an approximation about the net expenses through tax. This will give you a better retirement timeline.
About the gap
The gap is quite simply put the deficit that needs withdrawing from the savings or a surplus of funds that requires deposition. Depending on the situation, you will be faced with a negative or a positive gap, as evident from the earlier definition.
However, it is crucial to understand that this is quite a simple plan and doesn't take into account various dynamic factors like inflation and investment returns. Therefore, it is advisable to work with a professional and expert when it comes to planning your income following retirement.